What tax deductions are available for college education?
Caution: This deduction is scheduled to end with the 2007 tax filing season. Many believe that the deduction could be restored in 2008. No further information is available at this time. The following information relates to 2007 only. A limited deduction is allowed through 2007 for higher education tuition and related expenses. Deduction up to $4,000 is allowed on if taxpayers (modified) adjusted gross income is $65,000 or less ($130,000 or less on a joint return). If taxpayers modified adjusted gross income is more than $65,000 but not more than $80,000 (more than $130,000 but not more than $160,000 on a joint return), deduction is allowed up to $2,000. Business expense deduction is allowed, without dollar limit, for education that serves the taxpayers business, including employment. Deduction is also allowed for student loan interest. A taxpayer may not take more than one deduction for the same item.
Caution: This deduction is scheduled to end with the 2007 tax filing season. Many believe that the deduction could be restored in 2008. No further information is available at this time. The following information relates to 2007 only. A limited deduction is allowed through 2007 for higher education tuition and related expenses. Deduction up to $4,000 is allowed on if taxpayer’s (modified) adjusted gross income is $65,000 or less ($130,000 or less on a joint return). If taxpayer’s modified adjusted gross income is more than $65,000 but not more than $80,000 (more than $130,000 but not more than $160,000 on a joint return), deduction is allowed up to $2,000. Business expense deduction is allowed, without dollar limit, for education that serves the taxpayer’s business, including employment. Deduction is also allowed for student loan interest. A taxpayer may not take more than one deduction for the same item.
A. For years 2002-2005, a limited deduction is allowed for higher education tuition and related expenses. For 2004-5, deduction upto $4,000 is allowed on if taxpayer s (modified) adjusted gross income is $65,000 or less ($130,000 or less on a joint return). If taxpayer’s modified adjusted gross income is more than $65,000 but not more than $80,000 (more than $130,000 but not more than $160,000 on a joint return), deduction is allowed up to $2,000. Business expense deduction is allowed, without dollar limit, for education that serves the taxpayer s business, including employment. Deduction is also allowed for student loan interest. A taxpayer may not take more than one deduction for the same item.
A $4,000 above the line deduction is allowed for qualified tuition expenses in 2009 and 2008. Deduction up to $4,000 is allowed on if taxpayers (modified) adjusted gross income is $65,000 or less ($130,000 or less on a joint return). If taxpayers modified adjusted gross income is more than $65,000 but not more than $80,000 (more than $130,000 but not more than $160,000 on a joint return), deduction is allowed up to $2,000. Business expense deduction is allowed, without dollar limit, for education that serves the taxpayers business, including employment. Deduction is also allowed for student loan interest. A taxpayer may not take more than one deduction for the same item.
